Friday, March 26, 2021

Suez Canal Updates: The Effects On European Commerce

From Bloomberg via gCaptain:

Suez Canal Blockage Impacts; Stern Partially Refloated- Updated

Key Highlights:

  • Two more tugs will arrive at the Ever Given by Sunday, ship management company says in statement
  • Oil tanker diverts; several ships in Indian Ocean that were bound for Suez change course
  • Food supply chain faces risks
  • The containership could be carrying almost $1 billion of cargo, IHS says
  • Work to dislodge the ship will take until at least middle of next week
  • Almost 240 vessels have queued up, rising from 186 Wednesday, according to Bloomberg data

Biden Says U.S. Looking to Help (10:22 p.m. London)
The U.S. is looking into how it can help to unblock the canal, President Joe Biden said.
“We have equipment and capacity that most countries don’t have. And we’re seeing what help we can be,” Biden said.

Sea-Doo Maker Pivots to Planes (9 p.m. London)
Sea-Doo maker BRP Inc. has parts from Asian suppliers stuck on vessels jammed in the blockage.
The situation prompted the Canadian maker of recreational vehicles to shift to its backup plan: flying another batch of components from Asia to its North American plants.
“It’s more expensive, but it’s better than stopping assembly lines,” BRP Chief Executive Officer Jose Boisjoli said Friday in a phone interview.

Ever Given Was Refloated From Stern (8:42 p.m. London)
The elite salvage team working with the Suez Canal Authority was able to float the vessel from its “stern/aft” and released the rudder at approximately 9 p.m. local time, according to Inchcape Shipping Services, a maritime services provider.
Another effort will take place using the high tide, with the hope of refloating the vessel entirely.
Canal Authority Says Tug Operations Restart (7:54 p.m. London)
Pulling operations with tug boats to free the ship restarted after dredging operations were completed, the Suez Canal Authority said on its Facebook page.

‘Perfect Storm’ Brewing for Italy’s Ports (7:07 p.m. London)
Once the Suez blockage ends, the huge backlog of ships will create a traffic jam for ports on the Mediterranean.
“When traffic will flow again, ships will flood Italian ports,” said Daniele Rossi, chief of Italian ports association (Assoporti). Operational difficulties will make that difficult to “cope” with, he said.
“The perfect storm is coming.”
About 40% of Italian imports and exports pass through the Suez Canal, according to Assoporti/SRM research on Italian maritime economy.

Logjam Nears 300 Ships (6:16 p.m. London)
About 293 ships ranging from livestock carriers to liquefied natural gas tankers are waiting to transit the clogged waterway, compared with 238 on Thursday, shipping data compiled by Bloomberg show.

White House Sees Energy Impacts (5:17 p.m. London)
The White House is concerned about the impact on global energy, said Press Secretary Jen Psaki, who added that the Biden administration is monitoring market conditions.
“We do see some potential impacts on energy markets,” she told reporters at a briefing on Friday.
Earlier, a spokesman for the White House National Security Council said the U.S. government had offered Egypt assistance removing the grounded ship, the Ever Given. 
Wind Turbine Projects Seen Delayed (4 p.m. London)
Germany’s Enercon expects delays in wind turbine components from Europe to projects in Asia, according to a company spokesperson. The wind turbine maker also sees risks of congestion at ports, once the ships held up at the Suez Canal arrive at their destinations. Enercon is examining to what extent the problem will affect its supply chains.

North Sea Crude Loading Delays Likely (3:28 p.m. London)
At least seven supertankers are expected to load North Sea crude in April, with two or three of them likely to face delays due to the blockage in the Suez Canal, according to tanker fixture reports and ship tracking data compiled by Bloomberg.

Tanker Shares Surge (3:10 p.m. London)
With diversions starting to pop up, the shares of oil tanker companies surged. Frontline Ltd. rose as much as 11% in Oslo, the biggest intraday gain since September. Other owners were jumping too: Euronav NV climbed as much as 7%, while DHT Holdings Inc. was also up 7%, and International Seaways Inc. added as much as 6.4%. It comes as the prospect of ships taking the longer route around the southern tip of Africa raises the chances for higher earnings for ships.

British Retailers Say Impact Manageable (3:21 p.m. London)
Dixons Carphone Plc has a small number of containers on the grounded Ever Given vessel but “we don’t believe this will cause any meaningful disruption to our stock levels,” the company said in an emailed statement. While some U.K. grocers are reporting small quantities of stock stuck both on the Ever Given and some container ships behind it, the products are mostly general merchandise and clothing which is less time-sensitive as perishable food items.

Tug Boats Get Ready to Try and Tow Ever Given (2.22 p.m. London)
Tug boats are tying themselves up to the Ever Given in order to attempt to tow the container ship, according to Inchcape Shipping Services, a maritime services provider. Suez Canal Authority dredgers were earlier being used to clear away sand, the firm said.

Multiple Ships in Indian Ocean Take Detour (1:58 p.m. London)
Several ships in the Indian Ocean, initially bound for the Suez Canal, have changed course away from the waterway after it became blocked, according to vessel-tracking data compiled by Bloomberg. The vessels include container ships Ever Greet, HMM Stockholm and OOCL United Kingdom; vehicle carrier Morning Calm; and cargo ship Angelic.

U.S.-Asia Naphtha Arbitrage Opens on Suez Canal Blockage: BNEF (9:55 a.m. New York)
The U.S. Gulf Coast-to-East Asia naphtha arbitrage has opened as naphtha shipments from key exporters such as Russia and Algeria delayed by the blockage in the Suez Canal....